Data Centers

Reliable, scalable, and cost-effective energy is essential to data center operations. We provide legal guidance on structuring and negotiating power purchase agreements (PPAs), securing interconnection and transmission rights, and managing relationships with utilities and independent system operators. Our attorneys have deep experience navigating regulatory compliance with FERC, PUCT, ERCOT, MISO, MPSC, and other governing bodies. We also advise on renewable energy sourcing, backup power arrangements, and energy infrastructure planning to help clients meet sustainability goals and ensure uninterrupted service.

Our firm provides strategic legal counsel to support the business operations and growth of data center enterprises. We assist clients in structuring joint ventures, partnerships, and special purpose entities that align with their investment and operational goals. Whether navigating mergers, acquisitions, or asset purchases, our attorneys ensure transactions are executed efficiently and with minimal risk. We also draft and negotiate a wide range of commercial agreements—including vendor contracts, colocation arrangements, and service-level agreements—tailored to the unique demands of data center operations. Our team works closely with private equity firms, infrastructure investors, and technology partners to support scalable, compliant, and forward-looking business models.

Data centers are custodians of vast amounts of sensitive and regulated information. We help clients navigate the complex landscape of data privacy and cybersecurity law, including compliance with U.S. and international regulations such as the GDPR, CCPA, and HIPAA. Our services include drafting and negotiating data processing agreements, developing incident response plans, and advising on breach notification obligations. We also conduct risk assessments and cybersecurity audits to help clients proactively manage threats and maintain trust with customers and partners.

We help clients maximize the financial viability of their data center investments through strategic tax planning and incentive negotiation. Our attorneys work with local and state governments to secure tax abatements, PILOT agreements, and infrastructure incentives. We advise on structuring transactions to optimize eligibility for energy and technology-related tax credits and exemptions, including sales and use tax relief for equipment and construction materials. Our team ensures compliance with incentive program requirements while unlocking long-term value for our clients.

From groundbreaking to commissioning, we support every phase of data center construction. Our team drafts and negotiates engineering, procurement, and construction (EPC) contracts, design-build agreements, and construction management contracts tailored to the unique demands of mission-critical infrastructure. We advise on procurement strategies, contractor risk allocation, and insurance coverage, and we help clients manage disputes, delays, and change orders. Our focus is on delivering legally sound, on-time, and on-budget projects that meet the highest standards of performance and reliability.

When disputes arise, our litigation team is prepared to protect your interests with deep industry knowledge and strategic advocacy. We represent clients in a wide range of disputes, including construction delays and defects, breach of contract claims, power supply interruptions, land use challenges, and cybersecurity incidents. Our attorneys are experienced in navigating complex, high-stakes litigation involving multiple stakeholders, including utilities, contractors, municipalities, and technology vendors. We also handle regulatory enforcement actions and represent clients before administrative bodies and in arbitration proceedings. Whether resolving disputes through negotiation or litigation, we focus on minimizing disruption and preserving long-term business value.

As the data center industry grows at record speed—driven by cloud computing, AI, and renewable energy demands—so does regulatory scrutiny. Developers, operators, and investors face potential complex antitrust challenges.

Dykema’s Antitrust and Trade Regulation team helps data center clients navigate these challenges with confidence. Our attorneys advise on pre-merger notifications filings, competitive analyses, investigations, and compliance programs, helping to ensure transactions and partnerships withstand scrutiny from state and federal regulators and private parties..  If litigation arises, our attorneys have decades of experience litigating virtually every aspect of the antitrust laws in courts throughout the U.S. With deep experience in technology, manufacturing  and real estate markets, Dykema brings a multidisciplinary approach that helps clients structure transactions, manage risk, and battle in court to help our clients succeed and grow..